U.S. falsely claims Canada is lax on digital piracy

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U.S. falsely claims Canada is lax on digital piracy

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U.S. falsely claims Canada is lax on digital piracy

Think border waits are bad now? Wait till they start checking your iPod, cellphone and computer for pirated music, illegal movies or a faux version of Quicken.

The U.S. Trade Office has added Canada to its Priority Watch List for failing to deliver on copyright reform and rein in counterfeiters and intellectual property thieves.

Uncle Sam wants more policing and more resources committed to fighting intellectual piracy across Canada and at the border.

In a stinging report, the U.S. Trade Representative singles Canada out as the only Western democracy not adequately protecting creators' rights in the digital age.

Canada is lumped right in there with such copyright scofflaws as Russia and China, who pay little or no attention to intellectual property rights.

The U.S.-based International Intellectual Property Alliance, seven trade associations representing 1,900 companies, alleges that business software firms alone lost an estimated $511 million US in Canadian sales in 2007 because of piracy, up from $494 million in 2006.

"As U.S. right holders, businesses, and workers suffer losses from international piracy, counterfeiting, and other forms of IPR theft, the Special 301 Report provides a critical policy tool for focusing on urgent problems that undermine one of America's great strengths in the global economy -- our innovation and creativity," Trade Ambassador Ron Kirk said Friday when he released the annual document.

"In this time of economic uncertainty, we need to redouble our efforts to work with all of our trading partners -- even our closest allies and neighbours such as Canada -- to enhance protection and enforcement of intellectual property rights in the context of a rules-based trading system."

This is an important development for B.C. given the border, the ports and our position on the Pacific Rim, which makes us a key player in Asian and American piracy.

Last December, Abbotsford police arrested a 27-year-old and seized 700 phoney DVDs, and there have been many other local raids. Earlier last year the B.C. Supreme Court imposed a $1-million fine and costs -- the highest penalty levied in Canada -- against a retailer for ignoring an order to stop selling fake goods.

So Canada has not been ignoring the issue and legislation is in the works to address some of the concerns.

The reforms update the existing law to cover new technologies developed in recent years and set tough new penalties for uploading and downloading copyrighted material and breaking "locks" on protected devices like cellphones and DVDs.

Under the proposals, consumers will be allowed to make a backup copy of a legally purchased CD or DVD, or transfer it to an MP3 player or other device for personal use only as long as companies have not put a digital lock on the material. There also are restrictions on what you can do with taped TV shows, especially if broadcasters employ a digital lock.

Yet the proposed amendments raise their own thorny issues.

The Canadian Music Creators Coalition slammed the bill, characterizing it as "an American-style approach to copyright. It's all locks and lawsuits."

For creators, who wants to sue their fans?

The Americans say they appreciate our cooperation in many important bilateral and multilateral initiatives and our reaffirmation of commitments to improve the situation.

"However," the report states, "the Government of Canada has not delivered on these commitments by promptly and effectively implementing key copyright reforms. The United States continues to have serious concerns with Canada's failure to accede to and implement the WIPO Internet Treaties, which Canada signed in 1997. We urge Canada to enact legislation in the near term to strengthen its copyright laws and implement these treaties."

The U.S. wants domestic enforcement increased and the volume of fake material transshipped through the country curbed.

"Canada's weak border measures continue to be a serious concern for IP owners," the report states. "The United States hopes that Canada will implement legislative changes to provide a stronger border enforcement system by giving its customs officers the authority to seize products suspected of being pirated or counterfeit without the need for a court order."

And we all know what that will mean -- more scrutiny and longer lineups.